Service sector: Transportation

Manufacturing sector: Automobiles

Presentation by: Koduru Mohan Venkata Krishna
TPS-B
2T3-078

Built for the road

ahead.
Ford has a better idea.
Quality is job one.

 Henry Ford built his first experimental car in a workshop behind his home
in Detroit in 1896.
Ford Motor Company, American automotive corporation founded in 1903 by Henry
Ford and 11 associate investors.
Ford's first production was in July 1903 at the Mack Avenue plant, the Model A, with
an under the floor engine selling for $850. In the first season it sold 1,708 cars.
Many later modals such as Modal- C, B, K, N; lead to the introduction of the famous
Model T or Tin Lizzie in 1909 at a price of $890.
In 1911, ford opened first factory outside north America-in
MANCHESTER,ENGLAND.
in 1913 he introduced the worlds first moving assembly line for cars; and in 1914, to
further improve labor productivity, he introduced the $5 daily wage for an eighthour day (replacing $2.34 for a nine-hour day).
By 1918, 50% of the country cars were of MODAL - T

 In 1919 the company was reincorporated, with Ford, his wife, Clara, and his
son, Edsel Ford, acquiring full ownership; they, their heirs, and the Ford
Foundation (formed 1936) were sole stockholders until January 1956, when public
sale of the common stock was first offered.
By the end of the 1920s, Ford had more than 20 overseas assembly plants in
Europe, Latin America, Canada, Asia, South Africa, and Australia.
In the later years, ford manufactures tri motor plane, jeeps , bombers for world
war.
It also expanded its business globally in Australia(1926),Europe(1967), Asia
pacific(1970).
More than 15 million Modal-T cars were sold until 1927, when it left the market
only leading to new and highly innovative automobiles to be created such as
MODAL-A(new version)
After the death of henry ford(1947) and Edson Ford(1943), Henry Ford II, grand
son of henry ford reorganized the companys tangled system of financial
management and reinvigorated its corporate culture by hiring talented younger
managers.
Henry Ford II continued to guide the company as chief executive officer (194570)
and chairman of the board (196080).

 In 1956, ford went into public with common stock shares

Over a period of time, it acquired AUSTIN MARTIN, JAGUAR,VOLVO,LAND ROVER,
acquired significant share in Mazda Motor Corporation.
1995, annual revenues reached $137 billion
However, as Ford struggled in the early 21st century, it began selling a number of its
brands.
In 2007 the company sold Aston Martin, and the following year it sold Jaguar and Land
Rover to Tata Motors Ltd. of India.
It was crucial stage for ford and faced many losses.
In December 2008 Pres. George W. Bush announced an emergency financial rescue
plan to aid the Big Three automakersChrysler LLC, General Motors Corporation,
and Fordto prevent the collapse of the countrys struggling auto industry.
However Ford possessed adequate funds to continue operations and, thus, did not
immediately require government relief.
It was able to avoid bankruptcyfor which both General Motors and Chrysler filed
Ford experienced increased sales and market share in 2009.
Ford adopted various cost-cutting measures and focused on stronger brands which
increased sales and market share in 2009.
In March 2010 the automaker agreed to sell Volvo to the Chinese company Zhejiang
Geely Holding.
http://www.taipeitimes.com/News/worldbiz/archives/2006/09/16/2003327900

FORDs Mission Statement

Location of Ford Motors:

Ford Motor Company World

Headquarters

1 American Road
P.O. Box 6248
Dearborn, Michigan 48126-2798
United States
Phone: 313-322-3000
Website: corporate.ford.com//
[{which is also commonly known as
the automobile capital of the
world.}]

Product Lines:

Ford Motors Operations: globally

http://corporate.ford.com/our-company/operations-worldwide/global-operationslist

Fords performance over the last decade

sales and revenue (in billions $)
200
150
100

sales and revenue (in

billions $)

50
0

dividends per share (in $)

0.6
0.4
0.2
0

dividends per share (in $)

net income/loss excluding tax paid (in billions $)

20
15
10

net income/loss excluding

tax paid (in billions $)

5
0

world wide vehicles sold(in thousands)

8,000
6,000
4,000
2,000
0

world wide vehicles

sold(in thousands)

250
200
150

assets
liabilities

100

shareholder equity

50
0
2010

2011

2012

ASSETS

LIABILITIES

SHAREHOLDER
EQUITY

2012

190,554,000

174,285,000

15,860,000

2011

178,348,000

163,320,000

14,928,000

2010

164,687,000

165,360,000

775,000

Ford is organized by:

Field Operations
Ford & Lincoln Marketing and Sales
Ford Customer Service Division
Global Marketing Sales and Service
Global Product Marketing Planning and Strategy

Ford is OLIGOPOLY and Diversified

They are competing with Toyota, Honda, GM, Kia, Subaru, Chrysler and
many other companies, but it is still very hard to get into the market.
When they first started with the model T they had a virtual monopoly, as
they were the only game in town.
It is diversified since it is producing cars, Trucks, SUVs, Hybrids, Crossovers,
spare parts, etc.,.
Ford CSR initiatives:

4 ps:
Product: Growth phase; Maturity phase;
Eventual period
Price: customer perceived value. market
skimming pricing(high price),
market penetration pricing(low price) and
neutral pricing
Promotion: ads, public relations
Place(distribution): America, Europe,
India..Etc...

Market Share Of FORD:

PESTEL analysis
Political: ford has taken a stand and not taken government handouts that
most car companies did
Economic: the economic downturn of the last few years has made ford cut
the fat from its production and really decide what is most important.
Sociocultural: ford has implemented concept of being the leader in the
industry of technology advances vehicles in their advertising
Technological: with the introduction of SYNC in their cars along with their
partnership with Microsoft has taken.
Environmental: Ford has emphasized the fuel efficient lines that will help
the environment
Legal: the regulations that the car industry are used to produce very safe
cars

SWOT analysis:

Ford Motor Company

SWOT Analysis

STRENTHS

WEAKNESSES

1.
2.
3.
4.
5.

1. High Cost Structure

2. Unprofitable Europe Operations
3. Low Exposure to Asia-Pacific

Strong position in US market

ECOnetic initiative
Sound Financial Performance
ONE FORD approach
Significant Growth in China

OPPURTUNITIES

THREATS

1. Positive Attitude towards Green

vehicles
2. Increase fuel Prices
3. New emission standards
4. Growth Through acquisitions

1.
2.
3.
4.

Decreasing fuel prices

Rising raw materials
Intense competitions
Fluctuating exchange rates

Human resources:
As of 2012 December, the approximate total number of individuals employed by ford are 171,000.
The interview process involves 4 steps.
Training process.
Job offers

THANK YOU